Thursday, January 30, 2014

New Tax Cut for Ohio Small Business Owners

Most Ohio small business owners are eligible for a 50 percent deduction on their first $250,000 of business income as part of tax cuts approved last year by the Ohio legislature. As part of the tax cut, a business owner can exclude 50 percent of Ohio net business income from the adjusted gross income reported on the state personal income tax return.

Owners of and investors in, Ohio businesses structured as pass-through entities (such as sole proprietorships, partnerships, S-Corps, and Limited Liability Corporations) are eligible for the tax cut. Owners and investors receiving income from the pass-through entity are required to pay personal income taxes on that income.